Daniel McCarthy at Juvenile Court, where he gave time and money for educational programs.

Daniel R. McCarthy played a pivotal role in the desegregation of Cleveland schools, wore championship rings as a part owner of the New York Yankees and was decorated with a Bronze Star, Purple Heart and the Combat Infantrymen's Badge for his service at the Battle of the Bulge in World War II.

But the reserved tax lawyer, known for his dedication to family, career and service, preferred to avoid the spotlight. He called himself "just an Irish kid from the streets."

He died Tuesday at his home in Shaker Heights, after battling pancreatic cancer for six years. He was 87.

He had worked full time until a year ago, but remained an eminence grise at McCarthy, Lebit, Crystal & Liffman, the law firm he co-founded in 1959.

"It wasn't work to him," partner Kenneth Liffman said. "It was the opportunity to help people. He loved being a lawyer."

McCarthy's legal and accounting skills and his stature as a graduate of Cleveland public schools were among the reasons that U.S. District Judge Frank J. Battisti named him special master for school desegregation in 1976.

He was responsible for unraveling the system's tangled finances and helping to design the desegregation plan, which included highly controversial cross-town busing.

He managed to maintain his low profile, but received federal protection because of threats to him and his family.

His four years of service in the case, among other activities, helped him win a 1994 Ellis Island Medal of Honor for "exceptional humanitarian efforts and outstanding contributions to our country."

Characteristically, McCarthy read from a list of the nationally prominent recipients at the time and quipped, "I should be cleaning the tables."

His nomination came from George Steinbrenner III, then principal owner of the Yankees. The two became friends in 1968, when they had children in sports camp together and Steinbrenner owned Cleveland-based American Shipbuilding Co.

McCarthy, one of the original investors buying the Yankees in 1973, recalled he was there "from the beginning, from the time we thought we had a deal with Vernon Stouffer to buy the Indians back in 1969 and 1970. When Stouffer backed out and sold the Indians to Nick Mileti, we heard that the Yankees would be available, so we started working on that."

Steinbrenner chose him as managing general partner. By succeeding against the IRS in amortizing player contracts, McCarthy revolutionized the tax practices and profitability of professional sports franchises.

McCarthy grew up on Cleveland's southeast side, graduated from John Adams High School in 1942 and served three years as an infantry sergeant in combat in Europe during World War II. He graduated from Cleveland College with a degree in accounting in 1948, worked as an Internal Revenue Service agent while attending night law school at the Cleveland-Marshall College of Law and began practice after graduating in 1954.

He and his wife, the former Patricia Drenser, were married two years later.

Children and young people were a particular concern. He donated time and money to causes as disparate as diagnosing learning disabilities in children and, though a staunch Catholic, starting Congregation Brith Emeth, later merged with Park Synagogue.